Fringe Benefit Definition

A fringe benefit is a benefit that employers give employees outside of their regular wages, such as health insurance or education assistance.

Fringe Benefit Extended Definition
Many employers offer benefits in addition to regular cash payments. Some fringe benefits are taxable, while others are nontaxable or partially taxable.

Fringe benefits include a range of perks such as:

Health insurance
Assistance with education
Legal services
Access to athletic facilities
Health savings accounts
Employee discounts
Employee stock options

Employers must include taxable benefits in the employee’s reported wages on the W-2 form. For example, bonuses must be included in wages on the W-2 form. If someone other than the employee receives the benefit, such as the employee’s spouse or children, the employee may still have to pay taxes on the benefit.

Last Updated By

Rachel Blakely-Gray | Apr 27, 2023

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